Real Estate India, Residential Commercial Real Estate Properties India

Question asked by Mr Binu from Bangalore, India: Hello, My name is Binu and I am in a sticky spot. My family purchased a house in Bangalore, a gated community. It is currently under construction. Now out of the blue, the developers of that area have decided to erect a transformer next to our house, right adjacent to the house. This was not disclosed earlier but also there is nothing in the contract to prevent the developers from using the rest of the land in the way they like. It poses two problems, it is a nuisance, and hazardous plus it ruins the look of the house. also the price would depreciate after the transformer is built. There are kids in our family and we would never live in this house if the transformer were to be built. What in your opinion is our best bet. Is there anything we can do to prevent this from happening. Thanks Binu Vatsala Answers: Most transformers have safety standards to follow. If there is genuine danger, nuisance or undue hardship, you can send a legal not...

Question asked by Mr Moorthi Subramaniyan from Bangalore: Hi Vatsala, I am Moorthi, recently I got registered my flat in a small apartment (it has 12 flats) in Bangalore. My agreement with builder is Rs. 9L for land cost & Rs. 21L for construction (including electricity, water, registration etc). My question is, How much VAT I need to pay (based on 4%)? Can you help me on this? Regards Mr. Moorthi Subramaniyan Bangalore Vatsala Answers: Service tax will not be attracted for a complex where the total number of Apartments is 12. Regarding the VAT liability, it may not be payable on the entire amount of Rs.21 lacs. Definitely the amounts charged towards cost of registration and obtaining electricity and water connection should qualify for abatement. On the balance amount, the builder has two options for collecting VAT, viz., either the compounding option or the actual value option. If he prefers compounding option then the VAT is payable on the balance amount at 4% in Karnataka. If th...

Question asked by Mr Sunny Sureen: Dear Vatsala, Few years back my father had applied for a loan from LIC Housing Finance for construction( extension ) of his existing property. The papers of existing house were kept as a security. We are living in the same house till now. The loan was granted and it is being repaid in the form of EMIs. During the 1st year a part of the EMI was adjust for a premium payment of Insurance policy started at the time of approval of the loan. But it was discontinued due to financial constraints and the policy got lapsed. A month back my father passed away and a major part of the loan is still outstanding. I am getting calls from the institution to pay the EMIs due since past few months. I told them the situation on phone. Now the institution is suggesting me to continue paying the EMIs till the entire loan is repaid. Please suggest me what would be the standard procedure to be followed in this situation, so that later on I dont face any restrictions/hassles ...

Question asked by Mr Gautam Dutta: Hi, Recently, I have brought a property where after completion of sale deed builder is charging extra money for registration saying it was an approximate. But where as during the time of booking there was no approximation mentioned in the form and proof of which is the carbon copy. After booking of form they have manipulated the original form by writing approx on the right hand side of registration cost which is clearly not there in carbon copy. Second thing they have issued a letter for remodeling of house which they are delaying or trying to skip. They are charging money for extra registration cost as well as I may have to incur some loss for remodeling otherwise they are threatening not to give the possession certificate and parking allotment. Where as in Sale deed a covered area parking allotment is mentioned and they have already taken money for that. What all legal action can be taken for this and how long it can bother me? With Regards Mr. Gaut...

Question asked by Mr Pankaj Shrivastava: I have purchased a flat at Kalyan, Maharashtra. At the time of booking it was told that all the trivial issue would be taken care of however now they are backing out. Some of the issue that I’m facing is listed below please let me know what kind of legal action can be taken. For their safety they have no prints / brouchers etc. Issues: 1. Irregularity in color shade of Bathroom tiles. 2. No night lamp point in Bedroom 3. No electric point for dining area 4. Electric point placed just beside the shower 5. Broken titles in Bathrooms and living room. Mr. Pankaj Shrivastava Vatsala Answers: If the builder has not specifically undertaken to give night lamp point, electric point in dining area, it cannot be enforced. However, the broken tiles and electric point just below the shower can be rectified by going to the Consumer court (within the limitation period) as it will constitute deficiency in service.Vatsala http://www.atoneplace.com For more infor...

Question asked by Mr Sanjiv Jain from US: I booked I have booked one 3 BHK flat in a new construction building and I’ll get possession in 6 months. This Flat has two numbers allocated to this (303+304). I checked with builder about the floor plan as approved by the corporation and found that this 3BHK is actually created by combing two 1 BHK flats. Builder told me that once building construction is over, he will get plan re-approved as per modified structure. According to him, I need to go for only single agreement of purchase and registration/stamp duty. I want you opinion on this. Should I go for this agreement? Will I get single loan on this property or that will be treated as double home loan even if I go single agreement? Mr. Sanjiv Jain, USA Vatsala Answers: As long as the modifications from sanctioned plan are internal, it will not amount to FAR violations. Hence you can proceed with the purchase. You should make sure that the builder gives you the Khata for your flat (in the na...

Question asked by Mr Wilbur D'Souza from Mumbai Hello, Im keen on constructing a building on my own property from which I will be forming a small partnership company. How will the tax be calculated? And what will be the percentage of deduction on the profits? Will appreciate if you could give throw some light on this. Thank you. Regards Mr. Wilbur D'Souza, Mumbai Vatsala Answers: Is the partnership in the business of construction and sale of properties? If so, then the land and building will be considered as stock in trade and no capital gains will be charged on transfer. The tax you have to pay is the normal tax on profits made by the partnership firm at the end of each financial year. Vatsala http://www.atoneplace.com\ For more information, kindly visit at Real Estate India or Online Real Estate Video .

Question asked by Mr Vivek from US: I am planning to buy a BDA Site in Bangalore. i want to know how to get a loan for that and what will be the terms and conditions from the bank Mr. Vivek, USA Vatsala Answers: To get a loan sanctioned for a BDA site, if it is a first time allottment, the allottment letter from the BDA should be given to the bank along with other formalities like your salary certificate, etc. If it is re-sale, then you should furnish the allottment letter, possession certificate, lease cum sale agreement (if applicable), sale deed, khata, tax paid receipts and encumbrance certificates. After inspecting the originals, the bank will sanction the loan. Vatsala For more information, kindly visit at Real Estate India or Online Real Estate Video .

Question asked by Mr Narayan Bhagavatula from Fremont, California: Hi Vatsala, My mother (75 yrs) has purchased an apartment in Hyderabad on March 21, 2006 , paid full amount and the seller and builder have acknowledged receiving the amount and my mother is in possession since March 21, 2006. But the Seller and Builder have refusing to register the property in her name. We have sent out notice to both 2-3 times. Can we pursue the case in Consumer Court ? Does Consumer Court have jurisdiction or powers to enforce the registration process ? I briefly read Consumer Act of India and felt it covers only movable goods and deficiency in services. I live in USA. I will appreciate any inputs from you. Thanks a Lot. Mr. Narayan Bhagavatula, Fremont, California Vatsala Answers: You can move the Consumer court only for deficiency in services. You should move the concerned civil court for specific performance. Vatsalahttp://www.atoneplace.com For more information, kindly visit at Real Estate India ...

Question asked by Ms. Aradhana from Bangalore: Hello, I am looking for some advice on the following: My friend bought some land from a developer and only has khatha for it (no registration). Meanwhile, the developer sold the land to another party who has completed khatha as well as registration. While the developer initially offered another piece of land, he does not seem to be forthcoming with his offer anymore. What steps can be taken if any to ensure that another piece of land is given or at least the money is returned? Any advice is appreciated. Thanks! -Aradhana Vatsala Answers: If receipts are available, a simple money suit can be filed demanding the return of monies paid with interest. If a valid agreement of sale is available (and it has not become time barred due to limitation) and if it can be proved that the registered owner had purchased the land after being aware of the prior agreement, then you can sue in a court of law. Otherwise you cannot get another site, but can get ...